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Gaming's golden age of marketing? What the 2026 UA report really says

AppsFlyer and Newzoo's latest report reveals rising UA costs, AI-driven creative scale, and genre-specific shifts that marketers must act on

Patrecia Meliana

29 Jan 2026 • 6 min read

AI just solved one problem for mobile games marketers—and created a bigger one. According to the latest 2026 edition of AppsFlyer and Newzoo’s State of Gaming for Marketers report, the real challenge has shifted from production to attention.

While AI democratized development and scaled creative output across all budget tiers, audiences didn’t grow at the same pace. As paid install share rose 10% and ad impressions jumped 20%, marketers flooded acquisition channels with creative variations. The result? Fierce competition for user attention in a crowded space where reach is cheap but retention is elusive.

This article unpacks the report’s biggest trends, from US$25B in global UA spend to genre-specific creative strategies, and explores what they mean for growth marketers, user acquisition teams, and creative leads navigating 2026.

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Performance marketing enters high-stakes era

User acquisition is scaling faster than ever, but so is the competition. AI has flooded the market with creative output, install volumes are rising, and regional dynamics are shifting. These early trends from the report show how performance marketing is evolving under pressure—and where the biggest changes are happening first.

1. AI floods UA channels, installs up 10%

The report highlights a sharp YoY increase in paid install share (+10%) and ad impressions (+20%), reflecting how AI tools are accelerating game production and creative output. Hypercasual genres, heavily reliant on paid traffic, pushed Android’s overall paid share to 59% compared to 44% on iOS.

Creative abundance now defines market entry. The data shows that games now enter channels with higher frequency and lower marginal cost, raising the bar for creative differentiation and fast iteration.

2. Gaming UA hits US$25B, iOS gains confidence

Global gaming UA spend reached US$25 billion in 2025, with nearly half flowing into the US market. Despite Android’s install dominance, iOS accounted for stronger budget growth (+6% vs Android’s +2%), largely due to confidence in performance post-ATT and stabilized ROAS.

However, spend declined in the US (-5% YoY), prompting marketers to explore high-growth markets like Turkey (+29%) and India (+19%). Casual games still dominate with over 50% share but declined -7% on Android and remained flat on iOS.

Chinese publishers now command 35% of global UA spend outside China, up 22% YoY. Most of that is driven by Android where China-HQ spend grew 29% compared to just 10% on iOS.

Their growth strategy? High iteration speed, localization at scale, and a focus on Casual and Hypercasual titles. Notably, Chinese publishers gained share in mature Western markets like France (+34%), Germany (+31%), and the UK (+26%).

Spend shifts by region and platform

UA spend is moving beyond the traditional strongholds. Monetization models now split cleanly between regions, while hybrid strategies slowly gain ground. Meanwhile, install momentum is building in unexpected places, driven by depth genres like Midcore. These shifts are redefining how and where marketers find growth.

1. IAP vs IAA: West vs emerging markets

Revenue models are increasingly polarized. Western markets account for 60% of global IAP revenue, with iOS leading (66%) versus Android (55%). The US alone drives 45% of iOS IAP.

Emerging markets, on the other hand, are scaling IAA. Turkey, for example, grew IAA revenue 25%, with Casino formats up 110% on iOS and 33% on Android.

2. Hybrid monetization rises, but slowly

Only 30% of games now use a hybrid model blending IAP and IAA, despite a 7% YoY increase. Casual and Hypercasual titles show the most adoption, while Midcore and Casino remain more segmented.

Android still leans toward IAA-only models, but hybrid adoption is rising, especially among top-tier advertisers. iOS Midcore titles hit 83% IAP reliance, but hybrid setups gained traction across genres.

3. Paid install growth shifts to emerging economies

Mature markets like the US, Brazil, and France saw declining install volumes, while Midcore-led growth emerged in Bangladesh (+135%), Bulgaria (+90%), and Kenya (+72%).

Mid-sized markets now drive meaningful install volume. Marketers targeting sustainable scale should consider depth genres like Midcore that resonate in emerging economies.

AI and creative strategy deepen

AI is doing more than accelerating production—it’s reshaping how marketers plan, test, and optimize campaigns. From tactical reporting to full-blown creative velocity, top-performing teams are leaning on AI not just for speed, but for smarter strategy. These trends reveal where the edge is being carved in 2026.

1. AI chat usage reveals genre strategy gaps

AppsFlyer’s analysis of 5,000+ AI assistant queries found that 46% focused on reporting and breakdowns. Hypercasual teams use AI tactically for fast visibility into installs and revenue. Midcore and Casino, by contrast, use AI for diagnostics, anomaly detection, and deeper monetization insight.

This reflects how different teams leverage AI: some for reactive reporting, others for strategic planning. Marketers should assess how well their analytics stack supports both use cases.

2. Creative scale becomes the competitive edge

Top advertisers ($4M+/quarter) produced 2,400–2,600 creative variations per quarter in 2025, up 25–30% YoY. Mid-tier advertisers ($0.5–1M) either stagnated or declined unless they scaled output beyond 1,000 creatives.

AI is narrowing the gap: even smaller advertisers (<$500K) boosted production 20–40% YoY. Creative testing velocity now determines whether brands can stay ahead of saturation and unlock winners at scale.

iOS expands media diversity

iOS advertisers now use 15% more media sources than Android, especially at higher spend tiers. Casino titles led diversification with 6–6.5 sources at large scale and 8–10+ at the top. Hypercasual games remained the most consolidated.

Diversification is growing fastest in Midcore and Casino on iOS, while Android has seen flat or negative diversification among top advertisers. For marketers, this signals a maturing iOS buying environment that rewards source variety.

Cross-platform spend reshapes player value

Newzoo projects the global games market to hit US$197B in 2025, led by mobile (US$108B), PC (US$43B), and console (US$45B). But platform revenue only tells part of the story.

Gamers now move fluidly across mobile, PC, and console. UA strategies must account for the full player journey, not just where spend originates. Marketing success depends on stitching together cross-device signals to reveal true value accumulation.

What marketers should know

As the gaming ecosystem grows more fragmented and competitive, marketers must rethink where and how they allocate resources. The following takeaways from the 2026 report offer strategic guidance on adapting to the latest shifts in user acquisition, monetization, and creative operations.

Creative scale is no longer optional: You don’t need a $4M budget, but you do need creative velocity. Start benchmarking your output volume by spend tier.
Segment UA by monetization model: IAA works best in emerging markets and genres like Hypercasual. IAP dominates mature markets and Midcore. Hybrid is the bridge.
AI usage = insight strategy: Are your teams using AI only to report performance, or also to diagnose and strategize? Elevate your AI workflows from reactive to predictive.
Diversify media, especially on iOS: Test multiple sources early. It’s not just a top-spender tactic anymore, it’s the new baseline for sustainable scale.
Follow Midcore into emerging markets: Depth beats breadth. Emerging growth is coming from players who want complexity, not just speed.

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